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Thursday, May 28, 2020

Maritime Logistics Professional

April 7, 2020

Total Charters LNG Dual-fuel VLCCs

(Photo: AET)

(Photo: AET)

Malaysian shipowner AET said it signed a deal with Total's Chartering and Shipping Services SA for the time charter of two liquefied natural gas (LNG) dual-fuel very large crude carriers (VLCC). The two newbuilds, which are able to carry about 300,000 tons of crude oil each, are scheduled to be delivered to AET from the first quarter of 2022.

The two newbuilds will be powered by LNG and will be among the most environmentally friendly VLCCs in the market. When in service, they will emit around 20% less CO2 greenhouse gases than conventional vessels; 85% less NOx and 99% less SOx. In addition, 99% fewer fine particles will be released. Immediately, these vessels comply with IMO Tier III levels, IMO 2020 sulphur cap and represent a significant step towards the IMO’s ambition to reduce carbon emissions by 50% by 2050 from a 2008 baseline.

Yee Yang Chien, Chairman of AET and President/Group CEO of MISC Berhad said, “We subscribe to a robust sustainability agenda which reaches into all corners of our business and includes a commitment to protect the natural environment alongside a strong focus on maintaining business stability and continuity. Today’s agreement with Total takes us a step further in delivering on that agenda. As a group, we took early and bold decisions to invest in LNG dual-fuel vessels and I am pleased to see the industry responding so positively to our strategy.”

Luc Gillet, Senior Vice President of Total Shipping & Trading, said, “Total is committed to safely deliver energy while reducing its impact on the natural environment and we continuously explore all elements of our business, including our supply chain partners, to ensure minimum emissions.”

“LNG is the best and immediately available solution to reduce the environmental footprint of shipping,” Gillet said. “The use of LNG to fuel our chartered vessels is the illustration of our determination to reduce the carbon footprint of our activities. With this decision, we reaffirm today our positive contribution to a sustainable shipping industry and our commitment to extend the use of LNG as a clean marine fuel.”

The supply of LNG for the two VLCCs will be provided by Total Marine Fuels Global Solutions, Total’s dedicated business unit in charge of worldwide bunkering activities.

AET currently operates two LNG dual-fuel Aframax vessels and two LNG dual-fuel Dynamic Positioning Shuttle Tankers within its global fleet.

Capt. Rajalingam Subramaniam, President & CEO, AET, said, “AET is investing to build efficiency in our partners’ energy logistics activities and this includes assisting them to meet their environmental targets. Today’s collaboration is a further example of our commitment towards Environmental, Social and Corporate Governance as well as the UN Sustainable Development Goals. We were among the industry leaders in building and operating LNG-powered Aframax vessels and dynamic positioning shuttle tankers and these two new ships will be our first LNG dual-fuel VLCCs.

“We continue to innovate and pioneer new technologies to ensure we achieve, or exceed, the IMO’s GHG strategy obligations including meeting our own internal aspiration of reaching IMO’s 2030 carbon reduction goals by 2025. These new vessels clearly demonstrate our philosophy that commercial viability coupled with environmental sustainability is possible; and shows how AET continues to “move energy to build a better world.”

Crude oilenergyMISC Berhad